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Jun 30, 2024
Forestar Q3 2024 Earnings Report
Forestar reported a decrease in net income and revenue, but maintained a strong pre-tax profit margin and increased its lot position.
Key Takeaways
Forestar's Q3 2024 results showed a decrease in net income and revenue compared to the same quarter last year. However, the company maintained a strong pre-tax profit margin and significantly increased its owned and controlled lot position. The company now expects to deliver between 14,600 and 15,100 lots and generate $1.4 billion to $1.5 billion in revenue for fiscal year 2024.
Net income decreased 17% to $38.7 million, or $0.76 per diluted share.
Revenues decreased 14% to $318.4 million on 3,255 lots sold.
Pre-tax income decreased 17% to $51.6 million, with a pre-tax profit margin of 16.2%.
Owned and controlled lots increased 40% to 102,100 lots.
Revenue by Segment
Forward Guidance
Forestar now expects to deliver between 14,600 and 15,100 lots and generate $1.4 billion to $1.5 billion in revenue for fiscal year 2024.
Positive Outlook
- Demand for finished lots remained solid.
- Supply of vacant developed lots continues to be constrained.
- Forestar is uniquely positioned to take advantage of the shortage of finished lots.
- Contracted backlog is strong.
- Balance sheet and liquidity are ample.
Challenges Ahead
- Cyclical nature of the homebuilding and lot development industries
- Changes in economic, real estate and other conditions
- Impact of significant inflation, higher interest rates or deflation
- Supply shortages and other risks of acquiring land, construction materials and skilled labor
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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